user accounts

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School

Queen's University

Department

Economics

Course

ECON 111

Professor

Richard Ascough

Semester

Fall

Description

The financial accounts provide a wealth of information that is useful to various users of financial
information, as summarised below:
User Interest in / Use of Accounting Information
Investors Investors are concerned about risk and return in relation to their investments. They
require information to decide whether they should continue to invest in a business.
They also need to be able to assess whether a business will be able to pay dividends,
and to measure the performance of the business' management overall
Banks and other financial institutions who lend money to a business require
Lenders
information that helps them determined whether loans and interest will be paid when
due
Creditors Suppliers and trade creditors require information that helps them understand and
assess the short-term liquidity of a business. Is the business able to pay short-term
debt when it falls due?
Customers & Customers and trade debtors require information about the ability of the business to
Debtors survive and prosper. As customers of the company's products, they have a long-term
interest in the company's range of products and services. They may even be
dependent on the business for certain products or services
Employees Employees (and organisations that represent them - e.g. trade unions) require
information about the stability an